Oman’s Port of Salalah and Oman Oil Marketing Company (omanoil), a leader in the sultanate’s energy sector, have signed a lease agreement for the development of a small to medium capacity fuel terminal at the port, a report said.

The project is expected to be completed by the end of 2016, and will further enable omanoil’s bunker and trading capabilities and growth in the port, added the Oman Daily Observer report.

Port of Salalah’s CEO David Gledhill said that the project will greatly enhance the bunkering options available at the port and is an important step to increasing the attractiveness of Salalah to international shipping lines.

Gledhill added that the strategic location of Salalah on major shipping lanes makes it a natural location for bunkering operations, and are delighted to have omanoil in the port working to realise this potential.

Omanoil’s acting CEO and general manager of shared services Faisal al Shanfari, noted that this lease agreement is a new milestone in the company’s decade-long history.